Governor Johnson Sakaja and his government faces heightened scrutiny following a report by The Auditor General revealing irregularities in the utilization of public funds.
The audit report, which was recently published, sheds light on a series of discrepancies and breaches of financial regulations within Nairobi City County.
According to the report, the county owes eleven legal practitioners a staggering Kshs10.74 billion, a figure that eclipses the entire revenue collected by the County, which stands at Kshs. 10.56 billion.
“Further, analysis of the revenue against the legal fees revealed that eleven (11) advocates out of a legal list of eight hundred and thirty-two (832) cases, are owed a total of Kshs.10,741,451,631 which is more than the total County own source revenue collected of Kshs.10,561,592,492,” states the Auditor General Report.
Details of Outstanding Legal Fees
The legal fees, the report adds, account for a large portion of the pending bills, raising concerns about the County’s financial management practices.
“The eleven (11) lawyers also represent 50% of the legal pending bills,” reads the report in part.
“In addition, a further one hundred and twenty-one (121) lawyers out of the of eight hundred and thirty-two (832) cases, equivalent to 14% of the total legal cases, are owed by the County Executive a total amount of Kshs.10,216,529,826.”
Moreover, the audit exposes irregularities in various aspects of financial management.
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Audit Questions Payment by Sakaja
Additionally, the audit identifies shortcomings in the management of executive scholarships, ward bursaries, and procurement of construction materials and vehicles.
In several cases, payments were made without proper documentation or adherence to procurement laws.
The report reveals that irregularities in the management of executive scholarships, ward bursaries, and procurement of construction materials and vehicles resulted in financial losses.
Firstly, the report highlights discrepancies in the acquisition of assets, revealing that despite the statement of receipts and payments reflecting an acquisition amount of Ksh 3.54 billion, a review of payment vouchers for construction projects worth Kshs. 566,973,601 exposed various gaps.
These gaps include non-compliance with procurement laws, lack of supporting documentation, and delays in project completion.
Consequently, the value for money on funds used for construction projects, particularly roads and civil works, could not be confirmed.
Additional Irregular Payments Sanctioned by Sakaja
Furthermore, irregularities in project implementation are brought to the forefront, with projects costing a total of Kshs. 1,365,490,591 found to be incomplete, not started, or encroached upon.
A contractor engaged to construct three health facilities at a contract sum of Ksh 869,400,000 during the 2020/2021 financial year- for instance, failed to complete the projects, with physical inspections revealing significant shortcomings.
Despite project failures, the same contractor was awarded another contract worth Ksh 344,100,000, which also stalled after partial payment.
Additionally, irregular procurement practices are uncovered, particularly in repairs and maintenance services.
The County Executive paid Ksh 4 million for motor vehicle repairs and maintenance without a consolidated procurement plan, supporting documentation, or requisite procurement documents.
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Similar irregularities were observed in the procurement of firefighting vehicle tyres, oils, and lubricants, with payments totaling Kshs. 7,502,000 and Kshs. 7,376,998, respectively, lacking necessary procurement documentation and approval procedures.
Moreover, mismanagement of executive scholarships and ward bursaries is highlighted, with disbursements totaling Kshs. 32,030,110 to beneficiaries from other counties and private primary schools.
Audit Raises Concerns over Funds Mismanagement
The audit raises concerns about the regularity and proper management of these funds.
Other discrepancies were observed in the procurement of construction materials and vehicles, with payments totaling Kshs. 14,750,000 for quarry chips/hardcore lacking evidence of compliance with procurement laws.
Similarly, discrepancies arise in the acquisition of vehicles and transport equipment, with a significant variance of Kshs. 671,589,099 between amounts incurred and payments made to motor vehicle dealers.
Nairobi Governor Johnson Sakaja. PHOTO/SAKAJA
